Financing Sanitation: Challenges and Opportunities in Developing Countries

 
Blended finance
for sanitation
 
The role of finance intermediaries
 
Valentin Post, FINISH Mondial
Thokozani Kaitane, Water For People Malawi,
Alok Kumar Majumder, Simavi Bangladesh
Santwana Sneha, Finish Society India
Barbara Senkwe, Tetra Tech WASH-FIN project,
 
The role of finance intermediaries: blended finance for sanitation
 
Agenda
 
Conceptual introduction: the landscape for financing sanitation, its different segments
Cases:
Sanitation financing for improved household sanitation (Malawi, Rwanda)
Repayable finance services at household, private service provider (Bangladesh)
Pro-poor commercial sanitation financing (India) including v
ideo
L
inking supply and demand of finance for sanitation (Kenya & Senegal)
Panel debate interactions with the audience
Conclusions and take away messages
 
 
Scaling : < $10 M
 
 
Scaling : < $10 M
 
Micro finance in its
various forms
 
commercial
        impact
        finance,
development
finance
 
“SME” financing
with guarantees
incubation funds
(grants/loans);
blended finance;
competitions
 
“SME” financing
with guarantees
Project finance
(DFIs); blended
finance; new
funds (TAS,YSB,
waterequity,
DGGF)
 
 
Most of us are here
 
How to get here?
 
US $ 1 – 10 million
 
US $ 1 billion
 
US $ 100 million
 
And here?
 
Scaling commercial funding :  $10 M < $100M < $ 1B, How?
 
What “size of fish” are you in
currently ($1-10M, $100m, $250M)?
Is it working well?
How do you become the “next fish”,
what is holding you back?
How and by whom does the
intermediary get paid?
 
Money often costs too much – Ralph Waldo Emerson
 
Independent
Evaluation
 
US$ 3 million loan ACTIAM to Cashpor
(proof of concept)
Finish Society provided TA to Cashpor
TA package: demand generation, mason
training, monitoring support, handholding
Results: (1) loan conversion 100%; (2)
Utilisation 97%
36,843 safely managed HH sanitation
Testing contracts (RBF), financing routes
 
Proof of concept of the ‘sanitation
impact bond
M-CRIL Limited
 – Incorporating EDA Rural Systems
Inclusive microeconomics
 
 
All Systems Connect 2023 is made possible thanks to the generous support of our partners
including the World Health Organization and :
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Explore the landscape of sanitation financing and the role of finance intermediaries in addressing the challenges faced by households, enterprises, and utilities in developing countries. Learn about different financing segments, cases studies from Malawi, Rwanda, Bangladesh, and India, and scaling strategies using various financing instruments.


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  1. Valentin Post, FINISH Mondial Thokozani Kaitane, Water For People Malawi, Alok Kumar Majumder, Simavi Bangladesh Santwana Sneha, Finish Society India Barbara Senkwe, Tetra Tech WASH-FIN project, Blended finance for sanitation The role of finance intermediaries

  2. Agenda Conceptual introduction: the landscape for financing sanitation, its different segments Cases: Sanitation financing for improved household sanitation (Malawi, Rwanda) Repayable finance services at household, private service provider (Bangladesh) Pro-poor commercial sanitation financing (India) including video Linking supply and demand of finance for sanitation (Kenya & Senegal) Panel debate interactions with the audience Conclusions and take away messages The role of finance intermediaries: blended finance for sanitation

  3. Demand for sanitation finance (guestimates SDG 6.2) US$ million / year Available finance different segments US$ million / year Sanitation challenge role intermediaries US$ million / year Households 20,000 Microfinance 200,000 Generating / aggregating demand Loan product development Capacity development MFIs Handholding MFIs RBF Policy environment Enterprises 15,000 MSME financing 3,700,000 Technical expertise MSMEs Business development Handholding MSMEs Capacity development financial sector Design guarantees & other financial instruments Enabling environment Utilities 5-15,000 Pension funds 56,000,000 Building business cases meeting R/R profile Project financing (DFIs) Enabling environment Public financing SDG 6 20,000

  4. Scaling : < $10 M US$ 10,000 US$ 100 US$ 1,000 US$ 100,000 US$ 1,000,000 US$ 10,000,000 Financing instruments deployed Development finance guarantees Commercial impact finance development finance Informal sector lending Microfinance RBF Guarantees grants Public investment grants dedicated funds Revolving funds Public investment dedicated funds Climate finance? grants Technical assistance Business skills (capacity dev.) Enabling environment Business skills (handholding) Construction Construction Demand aggregation Business skills Business skills Enabling environment EE (legal etc) Enabling environment Supply side development

  5. Scaling : < $10 M US$ 100 US$ 1,000 US$ 10,000 US$ 100,000 US$ 1,000,000 US$ 10,000,000 Micro finance in its various forms SME financing with guarantees incubation funds (grants/loans); blended finance; competitions commercial impact finance, development finance SME financing with guarantees Project finance (DFIs); blended finance; new funds (TAS,YSB, waterequity, DGGF)

  6. Scaling commercial funding : $10 M < $100M < $ 1B, How? US $ 100 million US $ 1 billion US $ 1 10 million And here? How to get here? Most of us are here

  7. What size of fish are you in currently ($1-10M, $100m, $250M)? Is it working well? How do you become the next fish , what is holding you back? How and by whom does the intermediary get paid? Money often costs too much Ralph Waldo Emerson

  8. Proof of concept of the sanitation impact bond US$ 3 million loan ACTIAM to Cashpor (proof of concept) Finish Society provided TA to Cashpor TA package: demand generation, mason training, monitoring support, handholding Results: (1) loan conversion 100%; (2) Utilisation 97% 36,843 safely managed HH sanitation Testing contracts (RBF), financing routes Independent Evaluation M-CRIL Limited Incorporating EDA Rural Systems Inclusive microeconomics

  9. All Systems Connect 2023 is made possible thanks to the generous support of our partners including the World Health Organization and :

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